Full Text of HB3037 97th General Assembly
HB3037sam001 97TH GENERAL ASSEMBLY | Sen. Don Harmon Filed: 5/20/2011
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| 1 | | AMENDMENT TO HOUSE BILL 3037
| 2 | | AMENDMENT NO. ______. Amend House Bill 3037 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Public Utilities Act is amended by changing | 5 | | Section 19-145 and by adding Section 19-150 as follows: | 6 | | (220 ILCS 5/19-145)
| 7 | | Sec. 19-145. Automatic adjustment clause tariff; | 8 | | uncollectibles uncollectibles . | 9 | | (a) A gas utility shall be permitted, at its election, to | 10 | | recover through an automatic adjustment clause tariff the | 11 | | incremental difference between its actual uncollectible amount | 12 | | as set forth in Account 904 in the utility's most recent annual | 13 | | Form 21 ILCC and the uncollectible amount included in the | 14 | | utility's rates for the period reported in such annual Form 21 | 15 | | ILCC. The Commission may, in a proceeding to review a general | 16 | | rate case filed subsequent to the effective date of the tariff |
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| 1 | | established under this Section, prospectively switch, from | 2 | | using the actual uncollectible amount set forth in Account 904 | 3 | | to using net write-offs in such tariff, but only if net | 4 | | write-offs are also used to determine the utility's | 5 | | uncollectible amount in rates. In the event the Commission | 6 | | requires such a change, it shall be made effective at the | 7 | | beginning of the first full calendar year after the new rates | 8 | | approved in such proceeding are first placed in effect and an | 9 | | adjustment shall be made, if necessary, to ensure the change | 10 | | does not result in double-recovery or unrecovered | 11 | | uncollectible amounts for any year. For purposes of this | 12 | | Section, "uncollectible amount" means the expense set forth in | 13 | | Account 904 of the utility's Form 21 ILCC or cost of net | 14 | | write-offs as appropriate. In the event the utility's rates | 15 | | change during the period of time reported in its most recent | 16 | | annual Form 21 ILCC, the uncollectible amount included in the | 17 | | utility's rates during such period of time for purposes of this | 18 | | Section will be a weighted average, based on revenues earned | 19 | | during such period by the utility under each set of rates, of | 20 | | the uncollectible amount included in the utility's rates at the | 21 | | beginning of such period and at the end of such period. This | 22 | | difference may either be a charge or a credit to customers | 23 | | depending on whether the uncollectible amount is more or less | 24 | | than the uncollectible amount then included in the utility's | 25 | | rates. | 26 | | (b) The tariff may be established outside the context of a |
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| 1 | | general rate case filing, and shall specify the terms of any | 2 | | applicable audit. The Commission shall review and by order | 3 | | approve, or approve as modified, the proposed tariff within 180 | 4 | | days after the date on which it is filed. Charges and credits | 5 | | under the tariff shall be allocated to the appropriate customer | 6 | | class or classes. In addition, customers who do not purchase | 7 | | their gas supply from a gas utility and whose receivables are | 8 | | not included in a purchase of receivable program under Section | 9 | | 19-150 shall not be charged by the utility for uncollectible | 10 | | amounts associated with gas supply provided by the utility to | 11 | | the utility's customers. Upon approval of the tariff, the | 12 | | utility shall, based on the 2008 Form 21 ILCC, apply the | 13 | | appropriate credit or charge based on the full year 2008 | 14 | | amounts for the remainder of the 2010 calendar year. Starting | 15 | | with the 2009 Form 21 ILCC reporting period and each subsequent | 16 | | period, the utility shall apply the appropriate credit or | 17 | | charge over a 12-month period beginning with the June billing | 18 | | period and ending with the May billing period, with the first | 19 | | such billing period beginning June 2010. | 20 | | (c) The approved tariff shall provide that the utility | 21 | | shall file a petition with the Commission annually, no later | 22 | | than August 31st, seeking initiation of an annual review to | 23 | | reconcile all amounts collected with the actual uncollectible | 24 | | amount in the prior period. As part of its review, the | 25 | | Commission shall verify that the utility collects no more and | 26 | | no less than its actual uncollectible amount in each applicable |
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| 1 | | Form 21 ILCC reporting period. The Commission shall review the | 2 | | prudence and reasonableness of the utility's actions to pursue | 3 | | minimization and collection of uncollectibles which shall | 4 | | include, at a minimum, the 6 enumerated criteria set forth in | 5 | | this Section. The Commission shall determine any required | 6 | | adjustments and may include suggestions for prospective | 7 | | changes in current practices. Nothing in this Section or the | 8 | | implementing tariffs shall affect or alter the gas utility's | 9 | | existing obligation to pursue collection of uncollectibles or | 10 | | the gas utility's right to disconnect service. A utility that | 11 | | has in effect a tariff authorized by this Section shall pursue | 12 | | minimization of and collection of uncollectibles through the | 13 | | following activities, including but not limited to: | 14 | | (1) identifying customers with late payments; | 15 | | (2) contacting the customers in an effort to obtain | 16 | | payment; | 17 | | (3) providing delinquent customers with information | 18 | | about possible options, including payment plans and | 19 | | assistance programs; | 20 | | (4) serving disconnection notices; | 21 | | (5) implementing disconnections based on the level of | 22 | | uncollectibles; and | 23 | | (6) pursuing collection activities based on the level | 24 | | of uncollectibles. | 25 | | (d) Nothing in this Section shall be construed to require a | 26 | | utility to immediately disconnect service for nonpayment.
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| 1 | | (Source: P.A. 96-33, eff. 7-10-09.) | 2 | | (220 ILCS 5/19-150 new) | 3 | | Sec. 19-150. Purchase of receivables. | 4 | | (a) A gas utility with more than 100,000 customers that | 5 | | offers transportation service to residential and small | 6 | | commercial customers shall file a tariff pursuant to Article IX | 7 | | of this Act within 6 months after the date of this amendatory | 8 | | Act of the 97th General Assembly that provides qualifying | 9 | | alternative gas suppliers with the option to have the gas | 10 | | utility purchase their receivables for gas sales that are (1) | 11 | | made to residential retail customers and small commercial | 12 | | customers, as those terms are defined in Section 19-105 of this | 13 | | Act, and (2) charged on the gas utility's bill. For purposes of | 14 | | this Section, "qualifying alternative gas supplier" means an | 15 | | alternative gas supplier that (i) is certified under Section | 16 | | 19-110 of this Act and (ii) includes its charges for gas sales | 17 | | made in a gas utility's service area on that gas utility's bill | 18 | | pursuant to Section 19-135 of this Act. | 19 | | (b) Receivables for gas sales of qualifying alternative gas | 20 | | suppliers that are charged on the gas utility's bill shall be | 21 | | purchased by the gas utility at a discount rate of 1%. The rate | 22 | | shall include 0.5% to be retained by the gas utility for | 23 | | recovery of deemed intangible costs, and neither this 0.5% | 24 | | portion of the rate, nor the deemed intangible costs, are | 25 | | subject to review by the Commission. The remaining 0.5% of the |
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| 1 | | 1% discount rate shall be retained by the gas utility for | 2 | | recovery of the utility's administrative costs and is subject | 3 | | to periodic review by the Commission. Any portion of the 0.5% | 4 | | intended for recovery of administrative costs that is found by | 5 | | the Commission, after notice and hearing, to be in excess of | 6 | | prudent and reasonable costs shall be refunded to all | 7 | | customers, including customers of qualifying alternative gas | 8 | | suppliers using purchase of receivables. For purposes of this | 9 | | Section, "administrative costs" means all of the utility's | 10 | | costs incurred in its administration of the purchase of | 11 | | receivables program except for the deemed intangible costs. | 12 | | (c) In making a just and reasonable determination on the | 13 | | administrative costs, the Commission shall consider: | 14 | | (1) the gas utility's reasonable start-up costs and | 15 | | administrative costs associated with the gas utility's | 16 | | purchase of receivables; | 17 | | (2) the impact if used by the gas utility of an | 18 | | automatic adjustment clause tariff pursuant to Section | 19 | | 19-145 of this Act to recover uncollectible expense; and | 20 | | (3) whether the gas utility recovers uncollectible | 21 | | expense from customers of qualifying alternative gas | 22 | | suppliers through any of its existing rates or charges. | 23 | | (d) Reasonable start-up costs and administrative costs | 24 | | associated with the gas utility's purchase of receivables shall | 25 | | in the first instance be recovered from qualifying alternative | 26 | | gas suppliers through the utility's discount rate assessed by |
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| 1 | | the utility on those qualifying alternative gas suppliers who | 2 | | have the utility purchase their receivables. In order to | 3 | | prevent barriers to suppliers' use of a purchase of receivables | 4 | | program and ensure full cost recovery for the gas utility in a | 5 | | timely manner, a portion of the gas utility's reasonable | 6 | | start-up costs, subject to reasonable carrying charges as | 7 | | determined by the Commission, may be deferred for later | 8 | | recovery from qualifying alternative gas suppliers who have the | 9 | | gas utility purchase their receivables through the discount | 10 | | rate or a monthly per bill fee if such deferral is deemed to be | 11 | | necessary by the Commission. The gas utility retains the rights | 12 | | to (1) impose the same terms on retail customers supplied by | 13 | | qualifying alternative gas suppliers with respect to credit and | 14 | | collection, including requests for deposits, and (2) | 15 | | disconnect the retail customers, if it does not receive payment | 16 | | for its tariffed services or purchased receivables, in the same | 17 | | manner that it would be permitted to if the retail customers | 18 | | had purchased gas supply service from the gas utility. | 19 | | (e) The tariff filed pursuant to this Section shall permit | 20 | | the gas utility to recover from retail customers any | 21 | | uncollected receivables that may arise as a result of the | 22 | | purchase of receivables under this Section. The tariff filed | 23 | | pursuant to this Section shall provide for recovery of the | 24 | | prudently incurred costs associated with the provision of this | 25 | | service pursuant to this Section and may also include other | 26 | | just and reasonable terms and conditions. Nothing in this |
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| 1 | | Section permits the double recovery of uncollectible expenses | 2 | | from customers. | 3 | | (f) Amounts collected by the utility attributable to the | 4 | | 0.5% portion of the discount rate under this Section for deemed | 5 | | intangible costs shall not be used by the Commission to lower | 6 | | the base rate revenue requirement of the utility in any | 7 | | subsequent rate case.
In order to limit the implications on | 8 | | short-term debt of the utility, a utility may choose to delay | 9 | | purchase of unpaid receivables until the bill due date. Other | 10 | | than for initial implementation of the purchase of receivables | 11 | | program, when so choosing, a utility shall remit payments to | 12 | | the alternative gas suppliers no more than 2 business days | 13 | | following the due date.
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.".
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